Ola Electric Makes History with Sebi Nod for ₹5,500 Crore IPO – India’s First EV Startup to Go Public

Ola Electric, India’s leading electric two-wheeler manufacturer, has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). This approval is significant as it marks the first IPO by an electric vehicle (EV) startup in the country.

The IPO, anticipated to be one of the biggest new-age offerings this year, aims to raise funds for Ola Electric’s expansion plans. The company filed its draft red herring prospectus (DRHP) on December 22, proposing to raise up to ₹5,500 crore through a fresh issue of shares, along with an offer-for-sale (OFS) component of 95.2 million shares.

The approval from Sebi comes at a time when Ola Electric is undergoing organizational changes to improve efficiency. It plans to streamline operations by cutting over 600 jobs across various divisions.

Ola Electric intends to utilize the IPO proceeds for various purposes, including expanding capacity at its cell manufacturing plant, Ola Gigafactory, repaying loans, and investing in research and product development.

Despite facing losses, Ola Electric maintains its dominance in the electric two-wheeler market, holding a significant market share. The company sold over 37,000 scooters, accounting for 50% of the market share in May. However, it faces stiff competition from established players like TVS Motors and Bajaj Auto, as well as from startups like Ather Energy.

The IPO is expected to provide Ola Electric with the necessary capital to continue its growth trajectory and solidify its position in the rapidly evolving electric vehicle market in India.